ABSTRACT he study was carried to examine the role of micro-finance on poverty alleviation in Sornaliland sing a case study of 1-largeisa. The study objectively sought to determine economic activities ndertaken by borrowers, to assess the impact of micro credit services on poverty reduction mong smallholder farmers and entrepreneurs and to establish the challenges and respective )iution to the micro-finances in 1-Iargeisa. The study adopted case study design. The study pproacb was qualitative and quantitative. [n the quantitative approach. the study applied uantitative and statistical application in order to bring up the problem while in qualitative pproach added analysis to the results. A sample population of25 respondents was selected. Data ;as analysed using a computer package called excel. The study found out that business 1anagernent & starting skills from attending sensitization workshops provided b) Micro-finance 1stitutions others reveled that they leant saving skills from attending sensitization workshops ro,·ided by also through attending sensitization workshops leant how to start other income enernting activities and lastly they also revealed thnt got benefits which included family Imming methods. agricultural methods among others. that through literacy classes they learnt ),lll management skills whereas also respondents these acquired financial discipline not only ,1at they also learnt business ethics how to open an account among others. It was concluded that. he role that Micro-finance institutions in the poverty alleviation cannot be o,·er emphasized in largeisa. This is because micro finance is ensuring that the poor people "ho did not have access o credit through traditional banking system due to certain conditions. can n,1w have access to inance for their businesses. The study recommends that support in terms or training in financial ,nd operations guidelines is highly needed so as to broaden the knowledge nmong borrowers on 10w to commit loans into productive activities. There is need for the government or Somaliland md other relevant stakeholder to increase efforts to empower the Micro-finance institution nernbership through additional knowledge and skills to members there is no doubt that Microinance institution membership will become sustainable.